Mediating Effect of Brand Preference on The Relationship between Brand Awareness and Brand Performance of Selected Deposit Money Banks in Kaduna Metropolis

Abstract

The Nigerian banking sector has become increasingly competitive, with Deposit Money Banks (DMBs) investing substantially in branding strategies to enhance market performance. This study investigated the mediating role of brand preference in the relationship between brand awareness and brand performance among selected Deposit Money Banks (DMBs) in the Kaduna metropolis. A cross-sectional research design was adopted, and data were obtained from 561 respondents, comprising customers of FUGAZ DMBs within the Kaduna metropolis. For theoretical frameworks Aaker's Brand Equity Framework and the Stimulus-Organism-Response (S-O-R) framework were used in the study. The data were analyzed using Smart-Partial Least Squares Structural Equation Modeling (Smart PLS-SEM) version 4.0. Results reveal that brand awareness has a significant positive effect on both brand preference (β = 0.523, p < 0.05) and brand performance (β = 0.412, p < 0.05). Furthermore, brand preference partially mediates the relationship between brand awareness and brand performance (indirect effect = 0.267, p < 0.05). The findings suggest that banks seeking to improve their market performance should not only focus on building brand awareness but also invest in strategies that translate awareness into brand preference. The study contributes to brand equity literature by elucidating the mechanism through which brand awareness influences performance outcomes in the Nigerian banking context.